(MEBG) –National Bank of Abu Dhabi (NBAD) is planning to launch two mutual funds, which will be available to all UAE residents regardless of nationality, according to a report in Gulf Times .

The launch of the funds will take place in accordance with the opening of the Abu Dhabi floor of the UAE Stock Exchange this summer.

The first fund will be an open-ended growth fund, thus not limiting the holdings of its investors. It will be sold in units or shares of Dh10 each, with a minimum required investment of Dh1,000. The growth fund will first be targeted to one or two cornerstone institutional investors, and only at a later stage it will be offered to the public.

The second fund will be an umbrella fund, which will include several sub-funds, and will be administered by a new department to be set up in the bank. Terrence Allen, head of treasury and investment banking at NABD said "the money will be allocated to different sub-funds and will be invested globally."

It is expected that the funds will be a major attraction for foreign investors and thus will create a flow of money into the UAE from abroad. It will also be a turning point in the development of the local stock market.

The funds are similar to those offered by Emirates Bank International (EBI), the first bank in the UAE to have launched mutual funds.

NBAD is also launching a high-yield investment program using bonds that guarantee returns of 12 to 16 percent.